Innovation is too easy
06:25Hmm.
I bet the post title got your attention, but of course in this modern age of
digital content we bloggers need headlines that pop through all of the noise and
gain attention. It helps, of course, that I'm of the opinion that the headline
is provocative, and has, as Kissenger once said, the added benefit of being
true. Innovation, as practiced today in most corporations, is far too "easy"
and commercialization is far too difficult. What if that statement were
reversed? What if innovation was challenging and difficult, and
commercialization were easy? Let's explore, shall we?
Innovation
is easy, commercialization is difficult
Now,
let's get our language straight. When I write that "innovation is easy" what I
mean is that innovation as practiced in many corporations is rapid, inexpert and
quickly converges on a simple solution. Corporations assign teams without
skills or experience, rapidly conduct "brainstorming" exercises based primarily
on current opinion or past experience and move as quickly as possible to present
a small handful of ideas to a wary executive team. Innovation rarely has the
preparation, commitment or effort applied to it to really succeed. To many
people, innovation appears to be a couple of meetings where they apply some
unusual creativity tools, write some crazy ideas on a flipchart and return as
soon as possible to their regular work. Innovation is a vacation from the day
to day grind, but isn't really expected to create meaningful results.
Without
training, without skill development, without meaningful facilitation and without
a well-defined scope and expected outcome, innovation is easy.
But
commercialization is hard in this setting, for several reasons. First, since
there's not a lot of compelling new ideas, the existing products must produce
more revenue and profits than initially expected. Without a good pipeline of
new solutions, the old solutions become more important, so companies look for
methods to extend product life and add a few new features to existing products.
This crowds the product development process and eliminates room for new concepts
to enter. Second, since the few "ideas" that do make it to product development
and commercialization are so poorly developed and defined, a tremendous amount
of product definition that should have been done previously must be done in the
product development and commercialization phases. Third, as the product
development and commercialization teams get burned by inadequate or poor
concepts from the innovation activities, these teams downplay and "back burner"
new concepts and focus on existing products.
As
long as innovation is easy (and the results are poor) commercialization will
focus its attention on existing products and commercialization will seem
difficult for innovators.
Let's
now consider the alternative, where innovation is "hard", and commercialization
is easy.
When
I write "hard" I mean that innovation activities require careful planning, deep
commitment from innovation teams, building skills and doing the work necessary
to really generate great, valuable ideas. There is a sense of understanding
market trends and competitive actions. Innovation teams deeply consider
customer needs and emerging opportunities. Internal ideas and external
intellectual property are evaluated. Prototypes are built, minimum viable
products are constructed and tested. Consumers are quizzed about the solution
and the value it provides. Specific product recommendations are made based on
consumer feedback, confident ideation and product requirements.
This
is hard work, and requires a deep commitment, skilled and trained people, an
understanding of the process and the rationale for committing to this work, as
well as financial and human resources. Innovation becomes more than a few
sessions with a flip chart but an actual planned exercise to come up with game
changing solutions, not just a few haphazard and interesting ideas.
If
innovation is done effectively, can that make commercialization of the great
ideas easier? I'm certain the answer is "yes" because we've seen this in action
with our clients. Product development and innovation become simpler for several
reasons.
First,
a trust reason: product development teams, marketers and others involved in
commercialization have far more trust in a product or solution that's generated
from a defined innovation process, which has established its seriousness and its
capability. Rather than carefully considering and then relegating ideas to the
back burner, priorities are reworked to accelerate good ideas to market
faster.
Second,
a thoroughness reason. If the hard work is done in the innovation phase,
product development and commercialization can do what they are supposed to do in
their phase, rather than spend time reconsidering and reworking the product
definition and requirements and confirming consumer demand.
Third,
a pipeline reason. If there are really compelling ideas that customers are
clamoring for in the innovation pipeline, that can lead to more growth, more
revenue and more profit. This means that executives will prioritize good, new
ideas over older, tired existing products. Every firm wants a fresh, compelling
but profitable pipeline of new products and services. As soon as the "hard
work" of innovation demonstrates it can create a pipeline of these solutions,
the emphasis will be on accelerating them to market, rather than cautiously
testing a small handful.
Resetting
Expectations
For
too long we've humored ourselves that a bare commitment to innovation would
produce extraordinary results. You can witness this snide commitment in IBM
commercials where entire "innovation" teams were lying on the floor in the dark,
coming up with new ideas. Innovation is the most valuable, and probably the
most difficult work within an organization, yet corporations constantly
undersell the effort, under-staff it and move far too quickly and far too
inexpertly. This is why Peter Drucker once said that marketing and innovation
produce results, all the rest of business activity is costs.
We'll
know when corporations are serious about innovation not based on their words,
but on the emphasis they place on doing innovation right, doing it well and
doing it effectively. When innovation teams complain not about how difficult it
is for ideas to be accepted, but how hard their executives work them to get the
right ideas.
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